When PIANC’s Working Group 178 guidance on climate change adaptation planning was published in 2020, two main barriers to adaptation action were identified: how to manage climate change uncertainties, and how to make the business case for adaptation investment. PIANC-PTGCC Technical Note No.1 (2022) provided advice on the former. This Technical Note, No.2, tackles the latter.
Section 1 of Technical Note No.2 summarises how ports and waterways may be impacted by climate change. Section 2 discusses the main findings of several recent surveys reviewing the effects of atypical conditions or extreme events on port and navigation infrastructure and operations. Section 3 highlights some of the factors identified as potentially limiting adaptation action in the sector, along with the conditions needed to enable such interventions.
Section 4 of the Note explores existing and evolving drivers for action to strengthen resilience and adapt. These include understanding the impacts of projected increases in extreme events on port and waterway activities, and on economies and societies via supply chain issues. Other potential drivers of relevance to the waterborne transport sector are also discussed, including initiatives within the insurance and finance sectors; the growing focus on climate risk disclosure; evolving government commitments; and changes in regulatory and legal requirements.
Section 5 of the Technical Note brings all this information together to help the reader determine the scope of a business case assessment. It explains how potential costs and benefits can be identified and quantified to support the case for investment in adaptation action. It discusses the concept of climate change inaction; the ‘triple dividend’ benefits that can be realised by adapting and strengthening resilience; and the role of the losses-avoided principle in supporting the business case. It also highlights the potential relevance to some ports and waterways of the evolving position of the finance and insurance sectors; growing expectations in relation to climate-related financial risk disclosure; and the possible implications of failing to meet regulatory requirements or contractual obligations.
Finally, Section 6 provides an overview of the costs and benefits of improved climate change preparedness and of the assessment scoping process, via a series of questions intended to provoke discussion. It recognises that the location of a particular port or waterway, its function in the local and national economic context, and its ownership and management or governance model will all influence the scope of the assessment. Technical Note No.2 therefore aims to provide an insight, enable the scoping process, and – ultimately – facilitate the preparation of a bespoke business case argument.
